Federal Oil and Gas Pipeline Regulation – An Overview

Federal Oil and Gas Pipeline Regulation – An

Overview

Judith M. Matlock Davis Graham & Stubbs LLP

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Overview of FERC Jurisdiction Gas Pipelines Oil Pipelines

(Crude oil, NGLs, refined petroleum products_

Located wholly within one state

Not a determining factor Not a determining factor

Shippers can reserve capacity

Yes – firm service available

No – in general - common carrier obligation

Intent of shipper Not relevant Determining factor

Function of facilities Determining factor Not relevant – no gathering exemption

Governing Statute Natural Gas Act of 1938 Interstate Commerce Act - as it existed on October 1, 1977

Federal Regulation – Natural Gas Act of 1938 (NGA)

• Regulates transportation in interstate commerce (including storage)

• Regulates sales in interstate commerce for resale

• Natural gas companies engaged in such transportation or sale

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Gathering or Interstate – Modified Primary Function Test

• Length and diameter of the line • Operating pressure • Location of wells • Configuration • Central point • Location of compressors • Location of processing plant

Gathering or Interstate – Other Factors

• The purpose, location, and operation of the facility

• The general business activity of the owner of the facility

• Whether the jurisdictional determination is consistent with the NGA and the Natural Gas Policy Act of 1978

Gathering or Interstate – Still More Considerations

• No one factor is determinative • All factors do not necessarily apply to all

situations • Any and all other relevant facts and

circumstances of a particular case, including non-physical criteria

Residue Gas Lines Connected to Interstate Pipelines

• If not more than 5 miles in length, considered extension of the gathering system or the processing function

• If greater than 5 miles in length, generally considered an interstate pipeline

• Critical to consider in deciding where to locate a plant!

Gathering or Interstate?

Processing Plant

InterstatePipeline

≤ 5 miles InterconnectCompressor > 5 miles


200 PSIG 1,000 PSIG InterstatePipelineInterconnect

Compressor


Processing PlantDry Gas

Wet Gas InterstatePipelineInterconnect

Compressor


200 psig

1,000 psig InterstatePipelineInterconnect

200 psig

How Do You Know For Sure?

• File petition for declaratory order with FERC • Consider asking for limited jurisdiction

certificate if held to be a jurisdictional pipeline • Consequences of guessing wrong – potential

penalties (needed FERC pre-approval for construction)

Regulatory Requirements Under the NGA

• Certificates of convenience and necessity required for: – Construction of facilities – Transportation service

• Authorization required to abandon facilities or service

• Blanket certificates/authorizations available under open access regulations and tariffs

More Regulatory Requirements • Rates, terms, and conditions of service require

FERC approval • Rates must be just and reasonable • No undue preferences or advantage

– But firm and interruptible service available

• Recordkeeping and reporting requirements • Waivers of some requirements may be

possible

Transportation Not Regulated

Under the NGA • Intrastate pipeline

– Pipeline does not meet the FERC test for either a gathering line or an interstate pipeline

– Primary business – Transportation of gas to local utilities (also known as local distribution companies) and end user (not to downstream interstate pipelines)

– Location in a single state is not a test for whether a line is an intrastate pipeline

Transportation Not Regulated Under the NGA

• Hinshaw pipeline – Engaged in transportation in interstate

commerce – Receives gas within or at the boundary of a

state – All the natural gas so received is ultimately

consumed within such state – Regulated by state commission

Transportation not regulated under the NGA

• Section 311 transportation – Intrastate on behalf of interstate or LDC served by

interstate – Interstate on behalf of intrastate or LDC

• Gathering – Not what you think • Local Distribution • Plant Lines – Used to deliver gas to a plant for

consumption

Oil Pipelines

• Transport: – Crude oil – Natural gas liquids – from processing – Refined petroleum products

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Refined Petroleum Products

• Liquefied petroleum gas • Chemicals • Gasoline • Jet fuel • Diesel fuel • Lubricating oil • Fuel oil • Oil for roads and roofing

Federal Regulation – Interstate Commerce Act

• Interstate Commerce Act of 1887 (ICA) – Regulation of railroads

• Hepburn Act of 1906 – Added transportation by pipelines of commodities (except water and natural gas)

• ICA repealed, revised, and recodified in 1978 • Part I of the ICA applicable to oil pipelines, as it

existed on October 1, 1977, was not repealed and still applies today but only to oil pipelines (1988 USCA pocket part available as a PDF on the FERC website)


• Regulates transportation in interstate or international commerce

• By common carriers – All pipeline companies and all persons, natural or

artificial, engaged in such transportation


• Applies to transportation of: – Oil – Natural gas liquids, and – Refined petroleum products

• By pipeline, or partly by pipeline and partly by railroad or by water

• NO GATHERING EXEMPTION

Jurisdictional Test

• Is the movement of product through a pipeline

• For a specific shipper • Part of the continuous movement in

interstate commerce • Of the product for that shipper? • A PIPELINE LOCATED ONLY IN ONE STATE

CAN BE SUBJECT TO THE ICA

Intrastate or Interstate Movement?

• Depends on the essential character of the movement (i.e., the service provided)

• And the fixed and persisting intent (of the shipper) with which the shipment is made

• The same pipeline can provide both intrastate and interstate movements

• Test not tied to the function of the line (no exemption for the function of gathering)

Intrastate or Interstate Movement?

Is the owner of the red crude oil gathering line providing a FERC jurisdictional movement?

Conway

Colorado Kansas

Indicative of Interstate Shipment

• Through billing across different pipeline sections to the final destination for the same shipper, or

• Uninterrupted movement of product, or • Continuous possession of the shipment by the

carrier, or • Unbroken bulk of the shipment

Indicative of Intrastate Movement

• Break in the continuity of transportation • At the time of shipment

– No specific order – Of a specific quantity – Of a given product – Is being filled for a particular destination

beyond terminal storage between the two pipes

Indicative of Intrastate Movement

• The destination is terminal storage • The terminal storage is a distribution point or

local marketing facility from which specific amounts of the product are sold or allocated

• Transportation in the furtherance of this distribution within the single state is specifically arranged only after sale or allocation from terminal storage

Insufficient Facts To Establish Movement Not Subject to ICA

• Location of line wholly within a state • Length of the line (ICA held to apply to movements

on 1,400’ line; 3.8 mile line) • Function of line as gathering • Storage by itself not sufficient • Construction of line under private agreement • Existence of competitive alternatives • Ownership of the oil not sufficient by itself • Commingling of product not sufficient by itself

Presumption is Interstate Movement

• All interstate movements are jurisdictional unless the facts show a sufficient break in the continuity of transportation so that shippers moving product through these lines do not have a fixed intent to move product interstate

Duties Under the ICA

• To provide and furnish transportation upon reasonable request therefor – No guaranteed right to ship a specific quantity – Prorationing required if insufficient capacity – FERC pre-approval for limited capacity allocations

to fund new construction (next slide)

Exceptions to Pro-Rationing

• If necessary to fund new construction • Incentive shippers who make volume

commitments or dedications may receive: – A set aside of a % of capacity not available to new

shippers (not >90%) and discounted rates, or – Firm capacity (not subject to pro-rationing) in

exchange for payment of premium rates (at least $.01).

Open Seasons

• If proposing pro-rata service for everyone, no open season required. May file a tariff on 30 days’ notice. May request to shorten notice.

• If proposing any incentive service, must first conduct an open season and make that service available to everyone. If oversubscribed, allocate pro rata.

Temporary Waivers

• Pipeline or affiliates own 100% of throughput • No demonstrated third-party interest in

gaining access to or shipping on the line • No such interest is likely to materialize, and • No opposition to granting the waivers • Temporary waivers of sections 6 and 20 filing

and reporting requirements

Temporary Waivers

• Not available if also transporting product that “control” under a JOA (i.e., for non-operators) – Tapstone, 150 FERC P 61016, 2015 WL 220663 (Jan. 15, 2015, F.E.R.C.)

• Cannot qualify by forcing third parties to sell product to the pipeline before transportation

• If receive request for transportation, no longer entitled to the waiver

Duties Under the ICA

• No undue or unreasonable preference or advantage – Elkins Act provides for criminal liability for

soliciting or granting rebates, concessions, or discrimination

– Consider seeking declaratory order approving, in advance of construction, proposed tariffs with a priority service structure to fund new construction

Rates Under the ICA

• Initial rates: – Cost of service rates, or – Negotiated rates – Can propose a negotiated rate

if at least one non-affiliate has agreed to the rate. If protested, must file full cost of service rates.

Not Regulated Under the ICA

• Pipeline construction or the initiating and termination of service

• Intrastate movements not part of the continuous movement of product in interstate commerce for a particular shipper

• The Uncle Sam Oil Company exception – Private carriage – a very difficult test to meet (only two decisions where successfully met)

Other Federal Regulation

• Department of Transportation - Pipeline Safety Act

• Common carrier obligation for pipelines

located on BLM rights of way issued under the Mineral Leasing Act of 1920

State Regulation

• Varies by state • Some other possible statutes/regulations:

– Siting certificates – Rates, terms, and conditions of service – Enforcement of federal Pipeline Safety Act

requirements – Ratable take or common purchaser obligations – Eminent domain to acquire rights of way – Corridor certificates (North Dakota)

Conclusions

• Jurisdictional test under the NGA is based on the function of the facilities

• Jurisdictional test under the ICA is based on the essential character of the movement

• Scope of regulation is not the same under the NGA and the ICA

• Legal activities under one statute may be illegal under the other statute

• State regulation of pipelines varies by State

Davis Graham & Stubbs LLP DGSLAW.COM

KEY PROVISIONS OF MIDSTREAM AGREEMENTS

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INTRODUCTION

Topics to be covered: – Resource play dynamics – JOA issues – Agreements: Gathering Processing Transportation (jurisdictional lines)




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MIDSTREAM PLAYERS

Producers Gatherer

– Traditional – Private equity/start-up

Processors Marketers and brokers Interstate and intrastate pipelines Local distribution companies End users - industrial, commercial, residential




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RESOURCE PLAY DYNAMICS

Rapidly developing plays with shortage of infrastructure − Pipeline specs − Flaring issues − Capital requirements

Larger companies may not move fast enough Private equity-backed companies

− Can meet capital requirements − Build and sell – MLPs

Producers: building their own affiliate midstream companies − Controls pace of development − Build and monetize




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JOA ISSUES

AAPL Model Form JOA – Form 610: – JOA states that the installation of gathering lines will be covered by a separate

agreement Marketing under JOA:

– Right to take in kind on short notice – Operator no authority to make long term commitments

Operator contracts for midstream services – Non-ops negotiate separate agreements or ratify

Operator constructs midstream assets – Producer or Producer Affiliate owned systems – Non-ops sometimes participate under separate agreement




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GATHERING AGREEMENTS

Resources: Judith M. Matlock, “Natural Gas Gathering, Transportation and Storage Agreements,” Oil and Gas Agreements: The Production and Marketing Phase, Paper No. 6 (Rocky Mt. Min. L. Fdn. 2005)

Arthur J. Wright and Anna R. Irion, “You Found It, Now What Do You Do With It? Gas and Oil Gathering In New Shale Plays,” Oil & Gas Agreements: Midstream and Marketing, Paper No. 5 (Rocky Mt. Min. L. Fdn. 2012)




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GATHERING AGREEMENTS: DEDICATION

Dedication – Purpose – Area: wells, leases, geographic area – Limitations: formations, operated wells – Hereafter acquired and not subject to another

existing dedication




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Exclusions – Gas used in operations:

Compression Gas lift Pressure maintenance Free gas clauses

– Lessor royalties taken in kind – Operating exclusions:

Pooling Operator discretion in operations: plugging and abandonment




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Transfers of the dedicated leases Covenants running with the lands

Touch and concern Privity of estate Intent

Memorandum of Agreement – Colo. Rev. Stat. Section 38-35-108 – When instrument affecting title to real property is recorded,

unrecorded agreements purporting to affect title referenced in instrument have no effect as to third parties




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GATHERING AGREEMENTS: TRANSFERS

Transfers of the gathering agreement Require Assumption of Obligations

– Not just “subject to” – Novation

Identity of Transferee – Creditworthiness – Expertise – Consents to assign:

» Hard – Void transfer if not obtained » Soft – not to be unreasonably withheld » Consider combination

Conditions to transfers of the dedicated leases




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GATHERING AGREEMENTS: QUANTITY

Producer quantity commitment Mitigating gatherer financial risk

– Minimum daily volume – Guaranteed volumes – Shortfall: pay fee – Producer credit mechanism if overdeliver




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GATHERING AGREEMENTS: TERM

Term – Life of dedicated properties – Primary term or term of years – Factors




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GATHERING AGREEMENTS: GATHERER COMMITMENT

Level of service – firm or interruptible Required Acceptance: Maximum Daily Quantity When is firm not really firm

– Force majeure – Curtailment – Maintenance: notice and definition – Remedies for default

Importance of matching level of service with downstream commitments




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GATHERING AGREEMENT: WELL CONNECTIONS

Well connections – Location of connection – Timing

Indemnity – Minimum throughput Producer connects based on costs or timing Release: Permanent or temporary Sharing information:

– Drilling schedule – Capacity issues




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GATHERING AGREEMENTS: FEES

Compensation and reimbursement – Gathering fees – Escalation – F L & U – Drip condensate

Allocation of charges – By component – By pipeline system




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GATHERING AGREEMENTS: BALANCING

Nominations Balancing

– In kind – In cash

Gatherer’s duty to maintain balance Producer’s duty to cooperate Impact of allocations on imbalances




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GATHERING AGREEMENTS

Economic out – Uneconomic well connect – Uneconomic operations

Measurement and testing Statements, payment, creditworthiness




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PROCESSING NATURAL GAS Processing:

– Extraction and separation of the production stream into liquid hydrocarbon stream and a residue gas stream, and then –

– Fractionation of the liquid hydrocarbon stream into ethane, iso-butane, normal butane, iso-propane, normal propane, and natural gasoline

Other services: removal of water, CO2, or hydrogen sulfide Residue Gas: After removal of liquid hydrocarbons the remaining stream

is primarily methane and referred to as residue gas Shrinkage: Processing decreases gas volume and gross heating volume

(measured in BTUs). The decrease is referred to as shrinkage,




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PROCESSING AGREEMENT S

Agreement for removal of liquids and any impurities from the gas stream

Types of processing agreements – Fixed fee – Keep whole – on MMBTUs; plant keeps liquids – Percentage of proceeds (POP)

Liquids and residue gas sold by plant owner or producers (depending on type of agreement)




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PROCESSING AGREEMENTS

Curtailment: Predominant producer concern – Pipeline specs, flaring – Cash flow

How long and to what extent will production be curtailed? Solutions:

– Temporary or permanent release – Monetary penalty – Bypass plant or minimal treatment




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PROCESSING AGREEMENTS

Allocation – Procedure to determine how many gallons of each

NGL attributed to each delivery point – Also allocate residue gas, fuel, and other expenses – Typically based on ratios of theoretical gallons of

liquids and theoretical residue gas attributable to a delivery point over the total theoreticals delivered to the plant




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TRANSPORTATION AGREEMENTS - NGA

Natural gas transported on interstate pipelines – Types of service – firm and interruptible

All of the key terms and conditions are in the FERC tariff. The form of transportation agreement is also part of the tariff.

Find tariffs at: www.FERC.gov Documents and Filings eTariff Tariff Viewer



http://www.ferc.gov/


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TRANSPORTATION AGREEMENTS - NGA

Drafting a new tariff and agreements: – Start by reviewing the tariffs of one or more of the

downstream interconnecting interstate pipelines – Tariff terms and conditions heavily regulated by

FERC – Order 636 and subsequent orders – Very little room for non-standard provisions




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TRANSPORTATION AGREEMENTS - ICA

For jurisdictional movements of crude oil, NGLs, and refined petroleum products Tariffs tend to be relatively short Transportation Service Agreements or

Throughput and Deficiency Agreements tend to be relatively long




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The transportation agreements are not filed with FERC In the event of a conflict between the FERC

tariff and the transportation agreement, the tariff controls




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Drafting a tariff – start by reviewing the tariffs of the downstream interconnecting pipelines Standard tariffs - Rules and rates tariff(s)

– No incentive or premium rates – All shippers subject to prorationing (allocation) in

the event requests for service exceed capacity – typically based on shipper history




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Incentive tariffs – Include all of the provisions in a standard tariff – Plus incentive or premium rates for anchor

shippers – Plus modified capacity allocation provisions for

the incentive (anchor) shippers




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Incentive tariffs – Some examples – Mid-America Pipeline (MAPL) (demethanized mix)

incentive program based upon execution of a Dedication Agreement

– Kinder Morgan Pony Express LLC and Hiland Crude, LLC – incentive rates for committed shippers; 10% capacity reserved for new shippers

– Enbridge Pipelines (North Dakota, LLC, Enbridge Pipelines (Bakken) L.P. – premium rates for firm service




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Other provisions: – Identification of origin and destination points – Operational – nominations, line fill, quality specs,

gauging, testing, truck and rail car loading and unloading, storage, connection policy

– Responsibility – loss of product, claims and suits, financial assurance, notices, assignment

– Billing and payment




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Prohibited tariff terms and conditions – Any preferences in rates or terms and conditions

of service – Other than incentive provisions consistent with

current FERC policy – No rebates or refunds (including no delay

“penalties” for new construction)




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Throughput and Deficiency Agreement – Volume commitment with a “ship or pay”

obligation – Whether credit against future deficiencies for

prior excess deliveries – Whether non-operator or other third-party

volumes count toward the volume commitment




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Throughput and Deficiency Agreement – Negotiate whether deficiency payments owed: Due to Force Majeure (Transporter or Shipper) If Transporter otherwise fails or refuses to take




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Throughput and Deficiency Agreement – Remedies for failure to take: Temporary release (option to truck or use alternative

transportation) Permanent release – if condition continues for

extended period of time




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Throughput and Deficiency Agreement – Financial assurances – New connections and expansions – when does the

Transporter/Carrier have to connect to additional receipt points




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Other provisions: – If new construction – in-service date definition;

obligation to support FERC tariff filing – Upstream obligations of shippers – sharing of drilling

plans; coordination of new connections – Title, representations, and warranties – Dispute resolution; limitation on damages – Typically all of the rules tariff provisions




MIDSTREAM AIR QUALITY AND GHG ISSUES Randy Dann, Partner




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MIDSTREAM – SIGNIFICANT AIR QUALITY ISSUES

Source Aggregation Proposed Lower Ozone Standard GHG Regulation




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SOURCE AGGREGATION

Multiple sources/emitting units (even if not physically located at the same site) may be “aggregated” as a single stationary source, if they meet the 3-factor test and certain over-arching principles.

Examples of oil and gas facilities potentially at risk of aggregation:

– Compressor station(s) and gas processing plant

Primary consequence of aggregation: Exceedance of permitting thresholds – Major source construction and operating permit thresholds (e.g., 100 tpy VOC,

NOx in DJ Basin) – General Permit thresholds (e.g., 90 tpy for GP)




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SOURCE AGGREGATION FACTORS Three factors required to aggregate:

– (1) Same SIC code (industrial grouping); – (2) Under common control; and – (3) Located on one or more contiguous or adjacent properties – Must satisfy all three factors

“Adjacent” – EPA has inserted notions of “functional relationship/dependence” “Functional relationship” invalid per Summit Petroleum v. EPA, 690 F.3d 733 (6th

Cir. 2012)




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FUTURE AGGREGATION DEVELOPMENTS

EPA intends aggregation-related rulemaking Define “adjacent” Proposed rule in Spring/Summer 2015?




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EPA’S PROPOSED LOWER OZONE STANDARD

EPA is proposing to lower the ozone NAAQS to within the range of 65 to 70 ppb (8-hour average). See 79 Fed. Reg. 7,234 (Dec. 17, 2014) Taking comment on a standard as low as 60

ppb (uncertainty in scientific evidence at this level)




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WRAP REPORT




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EPA’S PROPOSED OZONE TIMELINE




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OZONE IMPLICATIONS FOR MIDSTREAM OPERATORS

Expanded NAAs

Increased permitting burdens and delays (e.g., lower major source thresholds)

More stringent emission control requirements (e.g., LAER, Offsets)




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GHG REGULATION - BACKGROUND

Massachusetts v. EPA (2007) – EPA can regulate GHG emissions.

Endangerment Finding / Light Duty Vehicle Rules (2009) Triggered Title V/PSD GHG Permitting (2010) White House Agenda (Climate Action Plan, etc.)




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UTILITY AIR REGULATORY GROUP V. EPA (U.S. SUPREME COURT)

Issue: whether EPA permissibly determined that regulation of GHGs from mobile sources triggered regulation of GHGs from stationary sources?

The Court addressed two central questions:

1. Can a PSD/Title V source be subject to permitting based solely on GHG emissions (i.e. “non-anyway” sources)?

2. Can a source already subject to PSD/Title V be required to limit GHG emissions by employing BACT (i.e. “anyway” sources)?




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UTILITY AIR REGULATORY GROUP V. EPA

“Non-anyway” sources: EPA overstepped its CAA authority in tailoring the emissions thresholds for GHGs. Sources cannot be subject to PSD/Title V based solely on GHG emissions.

“Anyway” sources: EPA reasonably interpreted

the CAA to require sources already subject to PSD to comply with BACT requirements for GHGs




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STATE GHG REGULATION Colorado’s game-changing methane regulation (2014) LDAR monitoring required for individual well

production facilities and compressor stations Well liquids unloading regulations Other states with similar programs




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QUAD O 2.0

40 CFR Part 60, Subpart OOOO (Quad O) to be amended to include measures to reduce methane emissions

National LDAR program; pneumatics?




THE NUMBERS GAME: RMP, PSM, AND OTHER ENVIRONMENTAL CONSIDERATIONS Brenna K. Finn, Associate




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INTRODUCTION

Environmental Considerations – Risk Management Program (RMP) – Process Safety Management (PSM)

Hot Topics & Impacts to Operators – RMP/PSM Revisions – Pipeline and Hazardous Materials Safety

Administration (PHMSA) Interpretation Letters – Toxics Release Inventory (TRI) Expansion




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CAA GENERAL DUTY CLAUSE

Clean Air Act § 112(r) – General Duty Clause “The owners and operators of stationary sources

producing, processing, handling or storing [regulated] substances have a general duty to identify hazards which may result from such releases using appropriate hazard assessment techniques, to design and maintain a safe facility taking such steps as are necessary to prevent releases, and to minimize the consequences of accidental releases which do occur.”




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GDC ENFORCEMENT ACTIONS (2013)*

Facility Type Case Category Case Status Civil Penalty Settlement Date Value of Complying Actions

Compressor Station Administrative - Formal Closed 0 Sept. 2013 $7,000

Compressor Stations Administrative - Formal Closed 0 Sept. 2013 $3,000

Measuring Station Administrative - Formal Closed 0 Sept. 2013 $7,000

Compressor Stations Administrative - Formal Final Order Issued $93,000 Aug. 2013 $177,000

Gas Plant Administrative - Formal Closed $35,000 Aug. 2013 0

* Reported per EPA’s Enforcement and Compliance History Online Database




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RISK MANAGEMENT PROGRAM

Clean Air Act § 112(r)(7) – Chemical Accident Prevention Program “. . . [t]he owner or operator of stationary sources at which

a regulated substance is present in more than a threshold quantity [must] prepare and implement a risk management plan to detect and prevent or minimize accidental releases of such substances from the stationary source, and to provide a prompt emergency response to any such release in order to protect human health and the environment.”




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RISK MANAGEMENT PROGRAM

Owner or Operator Stationary Source Regulated Substances & Threshold Volumes

– Naturally Occurring Hydrocarbons – Gasoline/Flammable Substances Used as Fuel

Plan Requirements




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RMP ENFORCEMENT ACTIONS (2013/2014)*

Facility Type Case Category Case Status Civil Penalty Settlement Date Value of Complying Actions

Gas Plant/ Processing Plant Administrative - Formal Final Order Issued 0 Mar. 2013 $70,500

Extraction/ Stripping Plant Administrative - Formal Final Order Issued $42,504 Apr. 2013 $24,557

Gas Plants Administrative - Formal Final Order Issued 0 Jun. 2014 $70,500

Gas Plants Administrative - Formal Final Order Issued $74,556 Sep. 2014 $141,000

Compressor Stations/ Processing Plant Administrative - Formal Final Order Issued 0 Dec. 2014 $50,000

* Reported per EPA’s Enforcement and Compliance History Online Database




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PROCESS SAFETY MANAGEMENT

29 CFR § 1910.199 – Requirements for preventing or minimizing the

consequences of catastrophic releases of toxic, reactive, flammable, or explosive chemicals

– Applies to: “a process which involves a [regulated] chemical at or above the

specified threshold quantities;” “a process which involves a Category 1 flammable gas [or] a

flammable liquid with a flashpoint below 100 °F . . . on site in one location, in a quantity of 10,000 pounds (4535.9 kg) or more.”




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PROCESS SAFETY MANAGEMENT

Employer Process Regulated Substances & Thresholds Requirements BUT . . . .

– NURF – Atmospheric Storage Tanks – Oil and Gas Drilling, Servicing, and Production Operations – PHMSA Jurisdictional Lines




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REGULATORY SHIFTS: PHMSA

Traditional PHMSA Jurisdiction – Transportation of hazardous liquids in pipeline systems,

including the incoming and outgoing pipelines of natural gas liquids processing facilities, up to the first pressure regulation device at the perimeter of such facilities

Interpretation Letters – Fractionation facilities with associated piping inside the fence

Interpretation Challenged – Pending resolution in DC Circuit (No. 13-1040, Feb. 2013; held in

abeyance until PHMSA enforcement actions are resolved)




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REGULATORY SHIFTS: RMP & PSM

Executive Order 13650 (Aug. 2013) – Chemical Facility Safety and Security Working Group

Report OSHA Request for Information (Dec. 2013)

– Expanded jurisdiction over oil and gas EPA Request for Information (Jul. 2014)

– Programmatic revision (new substances, thresholds, requirements, etc.)




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REGULATORY SHIFTS: TRI

Emergency Planning & Community Right to Know Act

Toxics Release Inventory Program (§ 313) – SIC Codes – Employees – TRI-listed Chemicals – Threshold Volumes

Petition and Lawsuit (2012 and 2015)




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HYPOTHETICAL




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QUESTIONS?

Thank you!

Brenna K. Finn Associate

(303) 892-7360 [email protected]



mailto:[email protected]